Electricity of Vietnam still falls short of VND180 trillion to invest in electricity projects in 2011-2015, said Duong Quang Thanh, deputy CEO of EVN at the online meeting on electricity plan WII deployment held today June 28.
The capital needed to arrange is for key projects providing electricity for the south such as My Tan 4, Duyen Hai 3, O Mon 3,4 and EVN has been negotiating to borrow from ADB, JICA and also asks the government to access to local funds.
Thanh said EVN needs a total capital of over VND500 trillion and has just arranged VND315 trillion.
The shortage of funds will impact the process of electricity plans however, for projects which have already arranged funds or will be able to access funds, EVN will ensure the timeline, Thanh said.
Phan Ngoc Quang, deputy director of Investment department of the Ministry of Finance said investors’ capital could only meet 20-30% capital needed for electricity projects and the rest will be raised from outside sources, and Vietnam side can arrange a maximum of 70-80%.
The MOF’s representative said in the short term, the steering committee of electricity plan WII is likely to propose Government to warrantee bank loans or have mechanism for investors to get soft loans.
For the long term, Vietnam will proceed restructuring of electricity industry, continue to raise electricity price as planned to attract investors and implement competitive electricity market.
Deputy Minister of Industry and Trade, Hoang Quoc Vuong, said to deal with capital problems, the key solution is pricing policy, when electricity prices is reasonable and profitable to attract investors both local and overseas.
Vuong also highlighted that EVN, TKV and PVN should take special note that they must pick up competent contractors to avoid project delay as it happened recently.
EVN’s representative said the group has cooperated with the Ministry of Industry and Trade to complete preparation for electricity competitive market to start from July 1, 2012 and 29 power plants are qualified to take part in this market, adding that electricity price bought from independent power plant will be 5% higher on average.